Ind AS 116 lease accounting software

Ind AS 116 requires a listed entity to recognise a right-of-use asset and a lease liability for substantially every lease, remeasure them when terms change, and disclose the result every quarter. Most companies run this on a spreadsheet maintained by one person. That works until the portfolio grows, the person leaves, or the auditor asks how a number was arrived at.

The spreadsheet problem is not incompetence. It is that Ind AS 116 is genuinely fiddly — modifications, reassessments, terminations and extensions each change the computation in a different way, and each one has to be traceable a year later. A model that holds all of that correctly becomes a system whether or not anyone intended to build one.

What is usually missing is not the arithmetic. It is the lifecycle: recording that a lease changed, recomputing from the right date, producing the journal in the form your ERP will accept, and leaving a record that shows what changed, when, and who changed it.

We build that as software, sized to the portfolio, and we build it so the finance team owns it without needing a developer on call.

What the work includes

  • Lease master: the agreements, terms, options and payment schedules in one place
  • ROU asset and lease liability computation
  • Lifecycle events — modification, reassessment, extension, termination — recomputed from the correct effective date
  • Journal generation in a format your ERP imports without rekeying
  • Quarterly disclosure output for the notes to accounts
  • Portfolio dashboard across entities
  • Immutable audit trail: what changed, when, by whom
  • User roles matched to preparer and reviewer

How it runs

  1. 01

    Model the portfolio

    Every lease type you hold, every lifecycle event you have had in the last two years, and the disclosures your auditor expects. The edge cases define the build.

  2. 02

    Prove the computation

    The engine is validated against your existing spreadsheet, lease by lease, until the numbers agree. Where they disagree we work out which one is right before going further.

  3. 03

    Integrate with the ERP

    Journals come out in the form the ERP accepts. Rekeying journals is where accuracy is lost and where the month-end hours go.

  4. 04

    Hand over to finance

    Preparer and reviewer roles, documented behaviour, and an audit trail that answers the auditor's questions without anyone reconstructing a spreadsheet from memory.

Delivered for a listed entity

Medi Assist

A comprehensive Ind AS 116 product, with the accounting logic, edge cases, software, and product design handled by one team. Medi Assist did not need to assign a full-time finance person to explain the accounting to our developers.

Instant lease calculations and system-generated monthly reporting, with journals exported in a ready-made SAP template for easier import.

Read the case

Questions we get asked

Do we need custom software, or will a spreadsheet do?

A spreadsheet is fine for a small, stable portfolio maintained by someone who is not going anywhere. It stops being fine when the portfolio grows, when lifecycle events become frequent, or when the audit trail matters more than the answer. The honest test is whether you could reproduce last year's disclosure from scratch today.

Will it integrate with SAP?

Yes. We have built SAP export as a module, so journals import without rekeying. The same approach applies to other ERPs — the work is producing the journal in the exact shape the destination expects.

Who maintains it after handover?

Your finance team runs the lease accounting workflow after handover. In the Medi Assist engagement, we owned the accounting logic and development without requiring a dedicated client finance person to translate requirements for our developers.

How do you handle lease modifications and reassessments?

As first-class lifecycle events, recomputed from the correct effective date rather than adjusted by hand afterwards. Each one is recorded in the audit trail with what changed and when.

Can the auditor trace a number back?

That is what the immutable audit trail is for. Every change is recorded with its author and timestamp, and the computation for any period can be reproduced.

We are not listed. Is this relevant?

Possibly not. Ind AS 116 applies to entities on Ind AS. If you are on AS 19 the accounting is different and the case for dedicated software is usually weaker. Worth a conversation rather than a build.

Start with a clear picture.

Fixed fee, fixed scope. The written report is yours, whatever you decide to do next.

Tell us what’s not workingBring us the brief